Bitcoin, the largest cryptocurrency by market cap, is trading above the $22,000 price level as concerns about widespread regulatory action ease.
The cryptocurrency market was trading in the green on Wednesday led by gains in Bitcoin (BTC), Ethereum (ETH), Binance (BNB), Cardano (ADA), Solana (SOL). At 6.00 am IST, according to Coinmarketcap.com, the global crypto market cap is $1.03T, up 2.12% over the previous day.
Bitcoin, the largest cryptocurrency by market cap, is trading back above the $22,000 price level as concerns about a wider crackdown by regulators ease.
After turning negative earlier in the session, BTC gained 3.2% to $22,323 during New York trading. Most of bitcoin has traded below that level since a series of regulatory actions were recently unveiled.
cryptocurrency prices
Meme Coin Dogecoin gained about 1.50%, while Binance Coin gained 2% and Ethereum gained 4.7%.
Solana (SOL) price rose 3.73 percent to $21.61 today.
Cardano (ADA) rose 7.77 percent to $0.3851.
Polygon MATIC rose 5.96 percent to $1.25.
"It's interesting to me that you're seeing a crypto rally when you have the SEC continuing to crack down on a lot of these businesses," said Shawn Cruz, chief trading strategist at TD Ameritrade.
Cruz said, "I'm not entirely sure I would expect it to stay."
Many crypto tokens were down on Monday for the first time since the November market meltdown, along with native tokens on the Binance exchange.
The New York State Department of Financial Services directed Paxos Trust Company to stop issuing new tokens of crypto's third-largest stablecoin, a Binance-branded coin known as BUSD, which has about $16 billion in circulation .
Paxos said the US Securities and Exchange Commission had notified the company of possible enforcement action. Kraken reached a settlement with the SEC last week.
Meanwhile, crypto-related stocks also rallied, with Coinbase Global snapping a seven-day losing streak, while MicroStrategy gained nearly 9%.
Bitcoin spent most of 2022 trading in tandem with stocks, especially those of tech firms. They were all affected when the Federal Reserve began a campaign to raise rates and reduce liquidity to reduce inflation.
The correlation broke when FTX collapsed and the cryptocurrency fell, only to return in the new year. The S&P 500 has added about 8% this year, while the tech-heavy Nasdaq 100 is up 15%. Bitcoin is up 34% this year after falling 64% in 2022.
“We have seen crypto markets perform well during US hours, a sign that institutional investors may be behind the buying interest,” said Teong Hung, chief executive of crypto investment firm Satori Research.
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